Hong Kong Draws Stablecoin Applications from Over 40 Major Firms

Hong Kong is processing license inquiries from more than 40 companies ahead of its new stablecoin regulation, according to a report published by Yicai.

The regulation, under the Stablecoin Bill, will come into effect on August 1, when the Hong Kong Monetary Authority (HKMA) begins accepting formal applications.

Major Firms Line Up for Stablecoin Licenses

Firms that have publicly stated their intent to apply include JD.com, Ant Group, Standard Chartered, and Circle. Several law firms assisting clients with preparation told Yicai they are managing ongoing consultations for others still finalizing application materials.

Alex Zuo, who oversees the payments division at Cobo, said most candidates are large mainland Chinese firms. “Many small and medium-sized companies are not qualified to apply and are only using the topic for short-term publicity,” he said.

Entities preparing to apply include digital finance providers, logistics firms with overseas operations, and internet companies. Several are hiring for blockchain compliance and engineering roles. Use cases under consideration include stablecoin issuance, settlement infrastructure, and multi-address wallet tools to facilitate fiat conversion.

Zuo described a growing separation between companies committed to developing stablecoin-based services and those issuing public statements with limited technical or operational backing.

Hong Kong Emerges as Stablecoin Benchmark

Qiao Yide, vice president of the Shanghai Development Research Foundation, said stablecoins are currency extensions and do not replace the current monetary system.

“They are still tied to sovereign currencies,” he said. He added that full transaction costs, when accounting for exchange fees, on-chain processing, and compliance checks, may be close to one percent.

The stablecoin process in Hong Kong now serves as a case for how financial authorities structure regulated issuance without adopting crypto-native practices wholesale. Licensing volume remains low, while demand among qualified institutions continues to increase.

Several jurisdictions are also advancing their own stablecoin frameworks, with Singapore, Japan, and the EU pursuing licensing rules focused on payments and reserve assets. Each model represents different approaches to integrating private digital currencies into formal oversight.

The outcome in Hong Kong may shape how Asian financial centers balance reserve backing, compliance requirements, and operational scope.

Frequently Asked Questions (FAQs)

Why are smaller firms unlikely to receive licenses?

Many lack technical and operational capacity and are engaging with the topic for publicity rather than implementation.

How does Hong Kong’s approach compare to other jurisdictions?

While Singapore, Japan, and the EU focus on payment use and reserve requirements, Hong Kong’s approach emphasizes regulatory structure and formal oversight without adopting crypto-native models.

Are stablecoins expected to reduce transaction costs?

Analysts say costs may still reach 1% when accounting for fees, compliance, and on-chain expenses, challenging assumptions about efficiency gains.

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